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Joined 1 year ago
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Cake day: July 1st, 2023

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  • Again, you are very naive. What you’re describe is cost-up pricing which hasn’t been a generally used method of pricing goods and services for decades at this point. The reason is that doing cost-up pricing is a really good way to go out of business.

    The way pricing works today is that sellers set pricing based on what they believe the customer is willing to pay. From there you work backwards accounting for retailer margin, cost of goods, transport, discounts, etc… To find your maximum cost per unit. If you can’t produce the product for less than the maximum cost, you either need to scale back your features, add a feature that would justify a higher sell price, or abandon the project.

    Your notion that companies would lower prices if they had to give retailers a small cut is not borne out by theory or by observed real world outcomes.

    You’re wrong. Doubling down won’t make you less wrong.




  • Valve doesn’t set the prices for any of the products you buy through their store. The game developers and publishers do.

    The exception is valve developed games which are mostly free to play and make money on useless cosmetics. Most of their successful games are built on mods that are only possible because valve takes the very consumer friendly position of supporting and encouraging modding of their games.

    Hell, they even allow and promote fan made remakes like Black Mesa and unofficial sequels.

    If valve is a monopoly, it’s only because they’re the only corporation in the pc gaming space (OK maybe include gog too) that respects their customers. They’re not perfect but they’re orders of magnitude better than the competition.